Unfortunately, coffee futures fell unexpectedly at the very end of the quarter putting many of our hedging positions underwater. An unrealized loss of $1.2 million (the value of our option positions held as of July 31, 2011) is reflected in our cost of sales, but this loss remains unrealized and could change during our fourth quarter. Without this unrealized loss, our gross margins remained at traditional levels. We remain focused on continued revenue growth and believe that we are taking the necessary steps to achieve the growth necessary to make us a more vital player within this industry.
That loss is unrealized and could change during our fourth quarter. Already since july 31st coffee prices have surged back up, that means some of that 1.2 million unrealized loss has already been reduced and will help them in their 4th quarter. By the way the 4th quarter is on its way to an end right?already in the second month of it!
>>Unfortunately, coffee futures fell unexpectedly at the very end of the quarter putting many of our hedging positions underwater. << What does it tell you? It tells me that they playing the casino and they they bet on the wrong horse. Also, why did they expose themselves. Is JVA a trading company or a coffee company?